U.S. retail sales rise much-more-than-forecast in January

The Commerce Department reported on Wednesday the sales at U.S. retailers surged 5.3 percent m-o-m in January 2021, following a revised 1.0 percent m-o-m decline in December 2020 (originally a 0.7 percent m-o-m drop). This was the strongest monthly gain since June 2020.

Economists had expected total sales would increase1.1 percent m-o-m in January.

According to the report, the largest advances in retail sales were recorded at electronics and appliance stores (+14.7 percent m-o-m), furniture and home furnishing stores (+12.0 percent m-o-m), nonstore retailers (+11.0 percent m-o-m), sporting goods, hobby, musical instruments (+8 percent m-o-m) and food and drinking places (+6.9 percent m-o-m).

Excluding auto, retail sales climbed 5.9 percent m-o-m in January after a revised 1.8 percent m-o-m drop in the previous month (originally a 1.4 percent m-o-m fall), also being much better than economists’ forecast of a 1.0 percent m-o-m gain.

Meanwhile, closely watched core retail sales, which exclude automobiles, gasoline, building materials and food services, and are used in GDP calculations, jumped 6.0 percent m-o-m in January after a revised 2.4 percent m-o-m decrease in December (originally a 1.9 percent m-o-m decline). Economists had forecast core retail sales growing 1.0 percent m-o-m in January.

In y-o-y terms, the U.S. retail sales jumped 7.4 percent in January after a revised 2.5 climb in the previous month (originally a 2.9 percent surge).